Undervalued Investment Opportunity? Independent Films

Investing in independent films may be underrated as a serious investment opportunity.

The risk is often highlighted. A Hollywood blockbuster gets made for $ 50 million yet returns $ 30 million. A loss.

But movies can have positive cash flow potential since they have multiple income streams: releases in theaters, dvds, foreign, direct to consumer, internet sales, advertising revenue . . . and the reason for investing in an independent movie is the budget is low giving the film a higher return on investment potential.

Let's look at a film in production right now: Joshua The Heart of a Warrior.

The movie is in the Mixed Martial Arts genre yet there's a genuine story of forgiveness and acceptance after the main character,Joshua, suffers a tragedy in the cage and becomes disabled.

The film is produced by Knuckle City Films and directed by Addison Henderson who has a track record for recent successful documentaries.

Independent films produced on micro-budgets of $ 500,000 or less can bring tremendous profits to the investors. The Blair Witch Project cost $ 35,000 and grossed $240 million and Tadpole cost $150 thousand then sold to Miramax Films for $5 million.

A movie is a product and creating a positive return on investment depends on key variables: the story, the production team, opportunities to screen at film festivals and the chance for distribution.

How much money does it take to invest in an independent movie?

For Joshua: Heart of a Warrior, investment and advertising opportunities exist for both individuals and companies.

An executive producer can own up to half the film for $ 50,000.

For only $ 5,000, an investor can receive up to 5% of the revenue from the film.

Or, businesses can advertise in the film for complete packages ranging from $ 6,000 to $ 1,500. Individual sponsorships are also available.

A full investment and advertising package is available from producer Marcos de la Torre.

Stop by the Knuckle City Films site and watch the trailer . . . if nothing else, pass along the word about the movie.

Here's a chance to own a piece of a quality film with a great story.